Wonder Bread Maker Gets OK On $21M Investor Settlement
Law360 (August 7, 2019, 9:41 PM EDT) -- A Georgia federal judge on Wednesday gave his initial stamp of approval to a settlement in which Wonder Bread maker Flowers Foods Inc. will pay $21 million to end stock-drop litigation brought by investors over allegations the company knowingly misclassified its distributors.
In consolidated litigation, named plaintiffs Walter Matthews and Chris B. Hendley had alleged Flowers Foods failed to disclose that it had been wrongly classifying distributors as independent contractors, despite the company being aware the classification was incorrect. As a result, Flowers Foods stock was artificially inflated during that time, according to the January 2017 consolidated complaint.
Following mediation, the...
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